tv CNN Newsroom CNN July 20, 2011 11:00am-1:00pm EDT
into special session to discuss the phone hacking scandal. cameron and his predecessors have been criticized for their ties to news corp. chairman rupert murdoch and the people who run his london media operation. >> the public expects is not petty political point scoring but a -- what they want, what they deserve is concerted action to rise to the level of events and pledge to work together to sort this issue out once and for all. and it is in that spirit that i commend this statement to the house. >> in this country, a new debt ceiling compromise seems to be getting traction in washington. six senators, three republicans, and three democrats are offering a plan to cut the nation's debt by about $3.7 trillion over the next decade. it includes spending cuts and about a trillion dollars in new tax revenue. republicans have insisted on deep cuts and no tax increases
before they'll agree to raise the country's borrowing limit. that debt ceiling deds line is now just 13 days away. minnesota's three-week government shutdown is over. democratic governor park dayton signed a budget bill today. he and republican lawmakers finally agreed to use accounting gimmicks to close the state's $5 billion shortfall. republicans refused to raise taxes. the shutdown left 22,000 state workers without a paycheck. and memphis public schools may not open august 8th as scheduled because of a budget fight. the school board says no classes till the city pace $55 million. the board says the city owes that much in tax revenue for upcoming school year. the board claims the city has shortchanged schools for years. >> someone has to assume responsibility. for the collective education of the children in the city of memphis. and i don't think that city
council can be exempt from that responsibility. >> i'm all in support of us having assurances and money in the bank. but i think that 55 was just an unreasonable amount to expect at this particular time. >> and france is raising the prospects of moammar gadhafi staying in libya on two conditions. french foreign minister alain jupe says gadhafi would have to give up power and agree to keep out of libyan politics. until now nato nations including the united states insisted he must leave the country. human rights activists say syrian troops gunned down perhaps as many as ten people during a funeral for protesters tuesdays in the city. mourners scattered when gunfire erupted. residents tell reuters troops and armored vehicles have moved into every neighborhood in homs.
syrian forces have been trying to crush the uprising since it began in march. american airlines is acquiring a bunch of new planes. the company says it has ordered 460 jets from boeing and airbus. this is the. first time in two decades europe's airbus has sold planes to the airline. american says the $20 billion deal will create the youngest and most fuel efficient airline in the u.s. excessive heat warnings, watches or advisories are posted across 32 states today. that dome of hot air parked over the center of the country is only going to grow. intense heats will spread out of the midwest and invad the eastern seaboard today. extraordinarily high humidity will make temperatures feel like 120 degrees in many cities. okay. so here's your chance to talk back on one of the big stories of the day. the debt talks. today's question -- what's the
solution to the political stalemate in the kara costello has more. >> you're scratching your head over that one, aren't you? >> it's not an easy one. >> the never ending debt ceiling debate, you know the players, obama, canter, boehner, biden, the gang of six, the tea party. generally seeking you don't like them much, not necessarilily because republicans don't want to raise taxes or most democrats wants to protect entitlements but because they can't get it the together as in compromise and "let's make a deal" and americans are sick of it. according to an abc news "washington post" poll fully 80% of voters, 80%, are now dissatisfied or angry about the way the federal government is working. lawmakers are aware of how you feel. really, they are. what are they doing about it? calling each other names. democrats rolled out a video campaign citing reagan's long ago plea to raise the debt ceiling as an adult moment. >> the united states has a
special responsibility to itself and the world to meet its obligations. it means we have a well-earned reputation for reliability and credibility, two things that set us apart from the much of the world. >> there, that's an adult moment. you see what the democrats are going for, don't you? some republicans are much more direct. congressman allan west sent an e-mail to debbie wasserman schultz. here's the e-mail. west called wasserman the most vial unprofessional and despicable member of the u.s. house of representatives. why? because they disagree over the republican-backed cut, cap and balance bill. and you thought things were going to get better after the midterm elections when voters voted out so many incumbents. so the talkback question today, when it comes to the debt ceiling, what is the solution to the political stalemate? facebook.com/carol cnn,
facebook.com/carol cnn. i'll read some of your comments later this hour. >> that's the trillion dollar question. thanks so much. we'll check back with you. here's a rundown of the stories we're covering right now. britain's prime minister goes toe to toe with parliament over the hacking scandal and the big fat truth about your favorite guilty pleasures and restaurant calorie counts. then a republican senator in the gang of six talks compromise and civility. how his group found common ground in the debt ceiling talks. and later, does the death of borders bookstore signal the beginning of the end for all bookstores? these owners don't think so. >> our customers go way back as far as they've grown up in the store when they were children, hair mother brought them in, and then they come back and bring their children. and it's sort of family-like. ♪ ♪ ♪ look at that car, well, it goes fast ♪
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and you'll say...my money. my choice. my meineke. british prime minister david cameron was on the defensive in firing back at members of the parliament this morning. they're critical of his close ties to top figures in the phone hacking scandal that has rocked his country. the prime minister's former communications director was once editor of the tabloid at the center of the scandal. >> of course, i regret and i am extremely sorry about the fury it has caused with 20/20 hindsight and all that has followed, i would not have the offered him the job and i expect that he won't have taken it. but you don't make decisions in hindsight. it's not about hindsight, mr. speaker. it's not about whether mr. coulson lied to him. it is about all the information
and warnings that the prime minister ignored. he was warned. and he preferred to ignore the warnings. >> that exchange in today's parliament tritt session followed yesterday's appearance by rupert murdoch. he testified before a parliament tritt committee. the billionaire businessman denied any prior knowledge of phone hacking in his massive media empire. let's go straight to london now as senior international correspondent dan rivers joins us. dan, let's begin with the prime minister. cameron's grilling today. he's accuses of having been a little too cozy with murdoch and his executives. is the prime minister's job on the line here? s>> reporter: i don't think it s at the moment yet. until and unless there are more evidences produced by the opposition labor party that could prove, for example, that david cameron was talking to
news international murdoch's company here about the bskyb takeover, something that he should not have been talking to him about. we know he had various conversations with rebekah brooks, the chief executive but we're told that they were appropriate but don't know what the content is yet. i don't want to get too bogged down in the detail. the short answer is not at the moment. i don't think anyone's talking about him being in a perilous position yet. this is slowly incrementally getting closer and closer to downing street's door. it is very, very awkward for the prime minister. it's taken up a lot of his time and put him in a difficult position. i think he's desperately hoping after today's combative exchanges in the house of commons behind me, this will be a line drawn under it. it will then go back to the police inquiry. this lot the politicians will be off on their summer holidays and i would think david cameron will be hoping this will be off his initial sort of entree for the summer and he can concentrate on
other things. >> let's revisit rupert murdoch's testimony. refusing to take any responsibility for this phone hacking scandal. take a quick peek. >> do you accept that ultimately, you are responsible for this whole fiasco? >> no. >> you're not responsible? who is responsibleable? >> the people that i trusted to run it and then maybe the people they trusted. >> so what has been the overall reaction there? >> well, i was in the room with ruppert and james murdoch. it was excruciating at times the pregnant silences, the pregnant pawses that will toed the specific questions from politicians thrown to rupert murdoch and suddenly there would just be nothing. we talk about a characteristic trademark of rupert murdoch, but when you hear it in the flesh, it was pretty uncomfortable. and i think the general impression that was given off by rupert murdoch was of a man who
was not on top of the detail of all this. he was not -- did not have a grip of his company, has not got a grip of this crisis. he appeared badly briefed and badly prepared. and his son james was constantly trying to leap in and help him out with a specific questions which were constantly delivered to rupert murdoch because it's rupert, the father, who is responsible for corporate governs of news corporation. i don't think it was a great day for the murdochs but they got through it, and as you see, their share price is now recovering, perhaps shareholders thinking they're through the worst of it. >> what's next now? you had the testimony before parliament. you hear trt prime minister today and then there's the separate police investigation. why does this testimony before parliament even matter? where does it go? >> well, i think that the next thing that's going to happen is this police inquiry is going to continue to roll on through the summer and that we could see
more arrests. we could see more evidence coming out. we might get more interesting details about whose phones were hacked, about which individuals in news international are alleged to have been responsible. don't forget also, that a lot of these people that have been arrested like rebekah brooks and so on haven't actually been indicted or charges yet, just arrested and released on police bail. we may get developments on that front, as well. it's fascinating stuff but a long way to go yet. >> appreciate that. dan rivers from london. time now for a look at some of the other stories we're following. police in montgomery, alabama have made the biggest cash seizure on record. they pulled over an 18-wheeler after the driver made an illegal lane change and found more than $1 million hidden in the cargo. if it turns out the money was being used for something illegal, police can keep 80% of it for crime fighting.
and this is pretty hard to believe. but it did. in california, a tiny but very powerful crime fighter is named paco, the chihuahua. he's the talk of the town after chasing armed robbers as you see right here in this surveillance tape, chasing them out of the shop in altadena. he nipped at their ankles, chasing them right across the street. and then on to ohio where heavy rains flooded roads and neighborhoods. parts of the state got as much as four inches in just a short time. the storms left tens of thousands of homes and businesses without power. so while the country's midsection doesn't need floods, it could sure use some rain to try and cool things down and intense heat wave is on locking in to 30 states. jacqui jeras with us now. it is an unbearableable summer. >> down right deadly. about 13 people have died in the midwest now, unfortunately, you can coupled to the heat.
the heat index yesterday in parts of minnesota up to 129 degrees. so yeah. >> for any state but especially for minnesota. >> they're not used to that kind of heat. take a look at this animation from noaa. it helps to put things into perspective. this starts on july 13th and watch as that heat just grows and expands across the midwest. really intensifies across the southern plain states, then slowly starts to shift its way off toward the east. that last image you just saw there showed you the heat finally beginning to move out of the upper midwest. that's going to happen by tomorrow. in the meantime, take a look at this. feels like 95 in minneapolis already. it's 10:00 in the morning here. 90 in fargo, north dakota. 93 in cedar rapids. 97 in chicago. here all those advisories that we've been talking about in the nation's midsection, but now we're going to see changes. all this heat starts to the shift eastward. we'll watch for relief in the
upper midwest by tomorrow. the northeastern corridor feels the brunt for the latter part of the week. 141 million people under advisories, a million square miles across the country. that's so many people impacts by the heat. all anybody's talking about. >> drink a lot of water and stay cool as you can. i'm trying, i'm trying. thanks so much. i know you're not counting calories but a whole lot of people are. don't count those numbers on the restaurants' websites apparently. you may be getting more than you bargained for. more calories that is. [ male announcer ] millions of men 45 and older
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well, guess what, house see may not be what you get. or vice versa. researchers at tufts university say they were shocked how inaccurate the information was on the restaurant web sites. the story from elizabeth cohen, senior medical correspondent. >> this woman is on a secret mission and it has to do with what's in this bag. she's a nutritious researcher and restaurants don't know she's checking up on them. back at her lab at tufts university, urban grinds up the food, turns it into a powder and analyzes it to find out how many calories there are. >> the sample we're going to take to actually put in the calorie meter needs to be a representative sample of the entire dish. >>sley found one in five restaurant dishes has at least 100 cal iries for than what the restaurant says it does. that means when you look on the restaurant's website, you can't always believe what you read. >> one food had more than 1,000 calories more than it was supposed to. it was just shocking.
>> urban and her colleague susan roberts wrote up findings in this week's journal of the american medical association. >> it's enormous. it shouldn't happen. >> several restaurants had dishes with a calorie count in the lab higher than what was on the restaurant's website including kip potely mexican grill where a bury the tote bowl had 249 more. the chicken and gokey soup from olive garden had 246 more calories and a chicken dish from boston market, 215 more calories. >> restaurants have got a lot to answer for. >> the national restaurant association points out on ample, the counts given by the restaurants are accurate. chipotle and observely garden told us their dishes are cooked from krach kra which means calories may vary. roberts says those extra calories add up. >> if you have 100 calories more than you think every day, that's something like 10 or 15 pounds you gain over the course of a year. >> and unless you have a lab, you'd never know why.
>> elizabeth cohen joining us now. this makes me feel terrible because i think i'm helping myself out by getting a salad in particular. but that could be wrong, too. >> right, the salads were the ones most prone to be wrong. for example, this side salad from outback steakhouse with bleu cheese dressing tufts as a it was about 600 calories off. >> because of the bleu cheese? that's what i always ask for. >> that could be why. take a look at you got your bacon bits and your cheese and there's quite a bit in there. outback says tufts might have goofed and ordered the entree salad. tufts says it was the side salad and it was wrong. >> what do we do when we go out to eat. >> three little words, on the side. for this salad, if you ordered the dressing on the side and if you ordered the cheese and bacon on the side, you can make sure that you're not sort of at someone's whim. what if someone throws an extra handful of bacon bits and
cheese? that's a lot more calories. >> they're in a hurry back there. >> be an empowered eater. >> i like that. elizabeth cohen, thanks so much. i'll still order the salads though. >> just onside. here's a look at today's news stories. choose the story you want to see next hour. he calls himself the godfather of china's growing hacking world and claims to have shut down the white house website. now he describes why he's training a new wave of hackers to hit other sites around the world. then second, it's a new way to pay for something without bills. coins or even credit cards called bit coin. a virtual currency that the doesn't abide by the rules of a bank or government. and then third, a closer look at a girls' soccer team well before the u.s. women's world cup run. meet the team nominatenated by "sports illustrated" as the sports team of the year in 2008. and i hear the ultimate goal. you can vote by texting 22360.
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the stories we're working on. up next, they call themselves the gang of six. this bipartisan group of senators may have finally found a way to bust through the debt debate gridlock. then rube pert murdoch's wife comes to her man's rescue. we'll take a closer look at news corp. fascinating first lady. and later, it's not just the mom and pop stories anymore. now a huge name in books is going under. the clock is ticking in the search for a deal to raise the country's debt ceiling. while the debate goes on, a republican plan to reduce the deficit passes the house but it has little chance of making it through the senate. republicans call it cut, cap and
balance, cut spending for next year, cap future spending and pass a balanced budget amendment to the constitution. even if the bill were to clear the senate, the president has promised to veto it. meantime, president obama has high praise for another debt reducing plan. it's a compromise put together by a bipartisan group of senators known as the "gang of six." that would reduce the nation's debt by $3.7 trillion over the next ten years. in the near term, it would cut spending by $500 billion. the proposal would also reform the tax code, some tax breaks would be eliminated and the number of tax brackets would be reduced from six to three. so the so-called gang of six plan has been in the works for months now, but the stalemate over the debt ceiling may have given it new momentum. senator mike crapo is a republican member of the bipartisan group behind this plan and joins us now from capitol hill. good to see you. >> good morning. >> okay, so this has been in the
works since january. so far, what is the reaction from fellow senators? >> we've had a very, very positive reaction from both republican and democrat senators. in fact, we've put out our ideas yesterday, and almost 50 senators, half of the senate showed up and i think to a person almost, they were very positive about it. >> so it's interesting because mr. boehner says that this gang of six plan "shares -- many similarities with the far-reaching strategy that he had been pursuing with the president." why might this be a more successful measure than what the president and other leaders were working on from the white house? >> well, for one thing, we are building a bipartisan basis for it in the senate. if the president and republican leaders can also build that bipartisan support, then i think the two the ideas could come together and form the foundation for a very big step for america.
i should say though that from what i understand of the negotiations that are going on at the white house, our proposal is two or three times larger in its scope. and it's much more comprehensive. it puts everything on the table. dramatically reforms our tax code and makes america a much more competitive and dynamic economy. and gives us kind of broad-based approach to reform of entitlements and spending processes across the board that i don't think were in those discussions. i hope they will be now though. >> so you mentioned larger and more comprehensive which might underscore why harry reid is questioning the timeline, whether there is enough time to try and get this through. >> that's a valid question. as we put this together, we never intended this to be a part of the debt ceiling battle. that's kind of a subset of the much bigger issue of our debt crisis. our proposal is a like i say, a comprehensive bipartisan
proposal to deal with the debt crisis. and it's a fair thing to say that it's sufficiently comprehensive and complex that it may take time to move forward. parts of it may be able to be used in the debt ceiling battle but ultimately we need a bigger and more comprehensive approach to dealing with our nation's most serious problem right now, which is our debt. >> so what he specifically is it about this measure that you feel with great relief and security, feeling that this is going to mean that the u.s. would avert a real crisis? >> well, what this plan does is put everything on the table as i have said. it has major reforms of entitlements, it saves social security from imploding. it will controls discretionary spending. it creates an enforcement mechanism that stops congress from by passing or finding loopholes around budgets and reforms the tax code in a way that reduces rates dramatically
but grows the economy and therefore, generates greater revenue through greater economic activity. that's the approach we need. >> you mentioned social security, but is social security likely to get some cuts under this measure as well as medicare and defense spending? >> well, i should say social security will not be utilized as a part of the solution to our debt crisis. we are proposing reforms to social security on a separate track simply to save social security from the wall that it's going to hit in about 20 years. and what we will do is actually stop social security recipients from seeing about a 22% cut if social security becomes insolvent. and yes, with regard to entitlements and defense spending, all of that is on the table. as a part of the reduction in spending in washington that's necessary to control our spending side of the equation. >> senator mike crapo, thanks so much for your time. >> thank you. and here's a reminder to vote on the story that you want
to see next hour, you can text your vote to 22360. text 1 for chinese hacker, hear from the godfather of china's hacking world on why he's training others to follow in his footsteps. text 2 for by thecoin, the virtual currency that doesn't abide by rules of a bank or government or text 3 for the unique girls soccer team that made headlines well before the u.s. women's world cup team did. the winning story airs next hour. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have?
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even in slow mo, it happened quicker than you you can say banana cream pie. a man lunges at rupert murdoch with a pie full of shaving cream. the pie eater maybe a little shi b -- sympathy. >> rupert murdoch has got this whole phone hacking scandal and his whole em peifer is in trouble. today while testifying in parliament, murdoch was attacked
by a man who threw a pie and yelled insulting names. threw a pie. yeah, murdoch immediately gave the man his own show on fox news. i would watch that show. wouldn't you? >> so that pie in the face moment has put the spotlight on murdoch's much younger wife wendi who pounced to defend her man when he came under attack. jeanne moos reports on her volleyball spike. >> wendi murdoch was easy to pick out in pink. when you're 38 years younger than your husband, it's nice to rub his back and pour him water before he testifies. she even restrained him when he pounded the table too much. but she didn't restrain herself when this happened. >> oh. >> reporter: an activist pulled a foam-filled plastic pie plate out of a plastic bag, some of that foam landed on m n producer jonathan wald as the attacker.
>> plunges it squarely into the face of murdoch. >> and that's when his wife wendi whacked the guy, even picked up the plate. >> hit him back with it. it was extremely dramatic. >> reminds us of the woman who used her purse to try to knock the gun out of a hostage taker's hand. >> no. >> at a schoolboard meeting. >> this is the weapon. >> apart from shaving cream, all rupert murdoch got was a tongue lashing from his attacker. >> you're a greedy billionaire. >> the activist who the british media identified as jonni e-mail bowles isn't a tweet saying it is a far better thing i have done than i have ever done before. it may have been more than a close shave for rupert murdoch but he avoided major embarrassment by getting his fillful off camera unlike ann coulter and ralph nader who managed to throw his pie back at
his attacker. bill gates got splattered and then his image got splattered for efernt all over the internet. an nit at that time bryant got pied by a gay demonstrator. >> well, at least it's a fruit pie. >> let's bray for him right now. >> first her husband prayed for the attacker, then he went outside and splattered him back. we wendi murdoch was praised by a member of parliament. >> your wife has a very good left hook. >> her wikipedia entry says she used her ninja background to ward off an attacker. the move is now being referred to as the crouching wendi hidden dragon. after the attack, she tenderly cleaned off her husband. >> she was smiling and seemed quite happy that she had managed to score a blow. >> we watched her crossing her arms and crossing her legs but
it was the right cross we won't forget. jeanne moos, cnn, new york. >> and she should be celebrating her skyrocketing popularity, but right now michele bachmann is busy fighting off rumors about her health. we'll tell you what the rumors could mean for her white house run. ola expfrom sprint. its powerful tools help you work faster and smarter so you can get back to playing "angry birds." it lets you access business forms on the go, fire off e-mails with the qwerty keypad, and work securely around the world so you can get back to playing "angry birds." it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com.
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to dig deeper. work smarter. not harder. i depend on myself the one person i do trust to take charge of my financial future. [ bell dinging ] she is sushlging in the polls, but could severe migraines affect michele bachmann's ability to lead? shannon travis, part of the best political team on television is live from the political desk in washington. shannon, tell us about these headaches and what is causing
these headaches for michele bachmann and the headache for her presidential run, too? >> hey there, fred. now that michele bachmann admitted she has migraine headaches she says like millions of americans do, some people are wondering if this will add stress to her. obviously running is very stressful. some people are wondering if she will be able to match the vests of a presidential campaign and should we win the white house, would she be incapacitated. this all stems from a report in the daily caller yesterday that said that used unnamed sources that said that michele bachmann suffers from migraines and they sent her to the hospital at least three times. yesterday she addressed that report at a campaign stop in south carolina. take a listen. >> i am prescribed medication that i take on occasion whenever symptoms arise and they keep my migraines under control. but like to be abundantly clear. my ability to function
effectively will not affect my ability to serve as commander in chief. >> so there you go, fred. michele bachmann saying they're not -- they don't incapacitate her in any way. but at that same campaign event yesterday, there's another story that emerged. abc's brian ross, he's an investigative correspondent for abc news, he was trying to basically question michele bachmann about whether the migraines caused her to miss any house votes ever. she wouldn't answer. he kept pressing her and apparently ran after her. we're told by a time correspondent that two michele bachmann bodyguards actually "manhandled brian ross," and pushed him around a little bit. the campaign says ross was ordered not to jump up on stage and he jumped up on stage. but the campaign is not addressing whether or not he was manhandled. >> all right. let's talk about more news with another presidential debate. this tonight. tell us all about it. >> that's right. it's being billed as the first
ever presidential debate on twitter. it's going to have six candidates, i'd read off the names, michele bachmann will be there,,000 mccotter, herman cain, gary johnson and rick santorum. there's a little bit of a snafu ahead of the debate tim pawlenty was listed on a press release a few weeks ago as being confirmed as attending. i contacted the campaign today. they said look, we never confirmed to be there. i then went back to the organizers of this debate and they were like you know what, it was a miscommunication problem. >> shannon travis, thanks so much. cnnpolitics.com for the latest political news. here's a reminder to vote on the story you want to see next hour. text your vote to 22360. text 1 for chinese hacker, hear from the godfather of china's hacking world on why he's training others to follow in his footsteps. text 2 for a bitcoin, the virtual currency that doesn't abide by rules of a bank or government.
or text 3 for the unique girls soccer team that made headlines before the u.s. women's world cup team did. the winning story airs next hour. getting a deal on a new car isn't as easy as it once was. the earthquake in japan and lower production by u.s. automakers have limited selections, and has driven car prices higher. alison kosik has tips to help you save. >> hi, alison. >> hey, fredricka. so manufacturers aren't just raising car prices these days. they're also offering fewer incentives. edmonds.com says incentives were down almost 20% in june compared to the same time last year. that, would out to an average of about 2,000 extra that you spend on your car. so before you we begin looking for new wheels, cnn's peter valdez recommends finding out what the car you have is worth now. be honest about your car's condition. the website will tell you how much you could get, if you sold the car yourself, and you can
use that to figure out if a dealer's offer for your trade-in is a realistic one. >> what about your new car? how can the internet apparently help? >> well, do your homework. when you walk into a dealership, be prepared. peter valdez says you should know which model you want and why. go to sites like edmonds.com, kvb.com and aol autos. they give information on fearings like fuel economy and power and these sites tell you real world prices as well as sticker prices. once you've narrowed down your search to three choices, it's time to take a drive. >> is there a best time to buy? >> okay. oh if you can afford to wait, cnn money is recommending to hold off till the fall because that's when production in japan is expected to pick up. dealers are going to start to move the 2011 models off lots to make room for the 2012 models. if you don't need the latest and greatest features, that's a great time to negotiate a great
deal. >> perhaps one of the most nerve-racking is how to negotiate. what's the best way? >> oh, exactly. so unless you're a skilled negotiator, you may have bet abouter luck getting someone else to handle it for you. cnn lites money lists car wu.com. both sites give quotes from dealers and you don't need to give out personal information. since the dealers know you can compare prices, they're more likely to give you their best offer. once you have the car, stop there. phil reid said fab extras aren't worth the cost. remember to read every document carefully before you drive off and sign on the dotted line and drive off with your vehicling. >> read the fine print. >> alison kosik, thanks so much. we're asking you to talk back. one of the biggest stories of the day. today's question, what's a solution to the political stalemate on the debt talks? todd says, ban political parties
what is the solution to the political stalemate? >> it's a pity we're headed for a dictatorship with the tea party associates. it's wrong to assume the rich do not pay their fair share when the rich pay the majority of taxes in our country. and then this from cameron, it's the well-being and the future of our country. it's a shame there's no one decent in washington. maybe we should send mr. smith back to washington. and this from dave, throw out the incumbents, and put in people that want to help the country -- oh, wait -- >> a lot of kcomedians there.
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so we have seen e readers becoming more popular across the years, and now book stores are going out of business, including border. we asked how many people own e-readers? 20.6 million, and expected to jump next year. more than 10,000 people will be out of a job when borders shuts it's doors. the president of border's blames the tough economy and the invention of the e-reader. >> reporter: once upon a time
all books had pages and were only bought in stores. what a fairy tale. today we read things call kindled, and books and nooks, and books are downloaded anytime. to see how much things have changed, just pier into john mcclure's front window as he runs his publishing company from his spare bedroom. he used to go to borders, and then saw the writing on the wall and gave up his >> t schaub to begin his publishing. so far published 200 electronic books, and has seen his business double each year. >> i think publishing is undergoing a huge change, not unlike the whole record industry with the -- with downloadable music. >> reporter: is it the end of paper works? mcclure says no, not even close. >> just in the last three years it has come to the point where e
book sales are on par with the paperback sales. >> reporter: marketing researcher agrees, and points out only 11% of americans reading e-readers. you can't look at borders as a failure of a book problem, but as a business standpoint. >> well, we are here, and here to stay. >> reporter: so far they have been around 24 years, and despite all the changes in the book business, their readers keep coming back, and they say their secret is something you just can't download.
>> customer service. >> reporter: knowing your customers? >> yes, being able to build repoor with them and knowing what they read, and our customers go way back as far as they have grown up in the store when they were children, and their mother broad them in and they come back and bring their children, and -- it's sort of family like. >> joining me now from a borders slated to slows or in atlanta, actually, so i imagine maybe independent bookstores are happy to see a megabookstore go? >> well, nobody likes to see 10,000 people lose their jobs, but to be an independent bookstore owner you have to love books and the magic of reading, and they don't care whether you capture that sensation to want to read at the library or in school or at a competitors store. they know once they have a leader, that's a customer for
everybody. the loss of border is a loss where hundreds of other places where people might get into books. >> seems like a sad chapter. thank you, martin savage, in atlanta. top of the hour. let's get you up to speed. a special and stormy session of the british parliament. prime minister, david cameron kept lawmakers from vacations to deal with the scandal. the prime minister hired colson -- >> of course i regret, and i am extremely sorry about the furry it has caused with 2020 hindsight and all that has followed, i would not have
offered the job and i suspect he would not have taken it. but you don't make decisions in hindsight. >> back in this country, president obama says he can live with a new debt reduction plan made by six senators. it cuts spending and increases revenue by re-writing the tax code. it's not clear if tea party republicans will accept the plan. they are insisting on deep cuts and no new taxes before they vote to raise the debt ceiling. the deadline on that is august 2nd. excessive heat warnings or watches or advisories are posted across 32 states today. that dome of hot air parked over the center of the country is only about to grow. intense heat will spread out of the midwest and invade the eastern seaboard today. extreme humidity will make it feel like 120 degrees in many places. texas is set to execute marc
anthony strohman. the shooting rampage happened shortly after the 911 attacks. he apparently believed the men were middle eastern and claimed patriotism as his motive. an event at the capitol honored gabe zimmerman. he worked for congressman gabby giffords. the texas rangers plan to raise the height of guardrails at the baseball stadium pap fan fell 20 feet to his death while trying to catch a souvenir ball. the rangers will also post signs warning fans not to sit or lean on those rails. >> we do exceed the code for rail heights, but obviously with
two events in the course of basically a year we felt that we had to take a different step at this time. today is the deadline. 38 principals and 140 teachers who work at atlanta public schools must resign today. if not the school board will fire them. the group changed answers on standardized test or gave the students answers out right that made it appear that atlanta schools were improving. and now thousands of students and teachers in memphis public schools are caught in a dispute over money and they don't know if they will be heading back to class. the school board says the city shortened the district of $150 million over the last few years, and classes won't start until they get 55 million the city has promised for this year. >> we might be talking about giving up the whole year, y'all.
if we're serious. >> somebody has to assume responsibility for the education of the children, and i don't think the city council can be exempt from the responsibility. >> we just heard saying schools could be closed indefinitely. and also with us on the phone, the mayor. this was your idea to suspend the opening of schools until the school board gets it's $55 million from the city. why? >> well, it's wha lum. when you see my hero, uncle andy young, tell him i love him and will see him soon. >> i will do that. >> for the last four years, the state supreme court said there was money owed to the children.
and then the city council said we're no longer going to wait for funds. 8-1 was the vote to delay -- >> doesn't it seem like an extreme measure. in the end, who is being hurt the most from the measure? >> what is extreme is the fact that even with a court order demanding that the payment be made the city administrators would choose not to. who is going to be hurt worst is all of us. it's very paradoxal that the president was here in may, and now we may lose the programs to help those same students achieve the way they have in the past. >> say you don't get the $55 million come september, october, and december, and it's possible the kids will not be in school all that time? >> it's possible the mayor and the city council may not do what
the courts said they need to do. the trigger is the receipt of those funds which we need not just to operate school, but to submit a legal budget to the state of tennessee. the state of tennessee provides about $400 million of our annual funding. it's not just $55 million in question, it's a much larger amount of money that the governor has stated that he's very interested in providing for memphis schools. >> mayor, you are able to hear what the mayor is saying. he is telling us until the city does what the courts have ordered them to do, schools will be closed indefinitely. what is your response on this? >> well, that's not going to happen. if it does happen, it will not be -- first of all, good morning. >> good morning, mr. mayor. >> it will not be because of the city of memphis. we are currently working, and we're going to avoid this and
our children are going to start school on time and teachers will report on time. >> that would be august 1st for teachers to report, and kids in school august 8th, and all that will happen on time? >> august 8th. let me say this, i guess the political thing to do would be to say they threatened us and bluffed us, and let's hold tight. children should not be caught in the middle of this. we're going to avert this. i have been in contact with a number of council members, and as a matter of fact i had a previously scheduled with one of the school board commissioners early this morning, and we're making progress. the children will not be caught in the middle. the key thing is, i think particularly, in the case of the commission of the school system, that's their job. i do not -- i do not resent at all the fact that they are bold and really firm on this, and
we're not going to say, oh, they bluffed us, and we're not going to do anything now. that's not going to happen. >> i apologize for interrupting you, but you said that school will go on as scheduled, there will be money. there have been assurances, but it seems like there's a mistrust, the board is saying we want to see the money and we heard the promise there will be money, and it has not been delivered. where is the money coming from? what is at issue? >> it will come from the property tax proceeds. this is where the difficulty comes in. unfortunately, folks do not pay their taxes on time, so we never have this huge pot of money at the beginning of school. what we're going to do, there is some agreement that will allow me to take funds that we were holding in an effort to settle an old lawsuit, and i don't want to get into the details of that, and set up equal installments so
for the coming year, we do not have $55 million, but we will come up with something satisfactory to the council and school system and we'll get this done. >> well, if it's not $55 million, is there a portion of that money that is satisfactory? we just heard the mayor say it may not be 55 million, but it could be satisfactory to the board. what would be satisfactory? >> the board resolution calls for $55 million, and i am not at liberty to make a statement as to what we will not accept. and officials find other things to do with the money. i acknowledge the children and their mind, but i have other things to do with my money, and that's the kind of things that
local education agencies are coming against now. i think you will see that local school boards are going to begin to stand and duty only thing they do and that is control the school year. >> thank you so much for your time. to both of you, i appreciate that. you will want to hear what the president of the memphis school system about the battle. he is lives in news room for the 2:00 eastern hour. the first victims if congress does not reach a deal in the debt talks, and a father carries his 4-year-old body after hunger kills her. and what britain's lawmakers got out of grilling rupert murdoch and his son. the nfl comes closer to getting their game back on. later, this trip over the
river on a zip line is not for fun, it's a bordarrder crossing. new ways smugglers are eluding the law. >> they will use smaller tunnels like this one, risking their lives in many cases. damen's 50+. it's the only complete multivitamin with ginkgo to support memory and concentration. plus it supports heart health. [ bat cracks ] that's a hit. one a day men's.
[ male announcer ] time to check your air conditioning? come to meineke now and get a free ac system check and a free cooler with paid ac service. meineke. we have the coolest customers. here's a look at today's choose the news story. you can vote for the story you want to see. first, he calls himself the godfather of china's growing hacking word and now he describes why he is training a new wave of hackers to hit other sights around the world. it's a new way to pay for
something about bills, coins or credit cards. it's called a virtual currency that doesn't abide by rules or a government. third, a closer look at a girl's soccer team that made headlines before the u.s. women's world cup run. meet the team nominated in 2008 as sports team of the year. vote by texting 22360. "1" for the chinese hacker, and "2" for the bitcoin currency, or three rain shower for girls' soccer goals. and the debt ceiling debt line is less than two weeks away. what happens if they don't raise the ceiling? we have details on that. carl, who decides who gets cut?
>> they would have difficult decisions to make in terms of what gets funded and what doesn't. a real interesting way to illustrate it is this right here. this is tax revenue, and other government revenue. we're looking at $172.4 billion. that's coming into the government. the government's bill for august is going to be $306.7 billion. the reason it works now is simply because we are deficit spending. if the debt krael something not raised, that $172 will be all the government has to work with. if you take the five programs that require the most government funding, you are looking at medicare and medicaid with $50 billion combined, and social security benefits almost the same, and defense vendor payments and interest on treasury securities and department of education. if you add up those programs,
you are already over the budget the government would have for august, fredricka. >> if we stuck with the five programs, what would be left out? >> a lot. just to name a few of them. we would be looking at people employed by the government would not get paychecks, and people serving in iraq in afghanistan would not get paychecks, and federal highway administration, there are many that wouldn't. this is sort of a simplification i want to point out. it's unlikely treasury would decide to fully fund five programs and not give anything to anybody else. they would minimally fund some programs. but it illustrates two things. one the level of deficit spending the government is currently at, and two, why officials at the treasury and throughout the government are so adamant the debt ceiling be raised so all the government programs could be fully funded. >> thank you so much. >> thank you.
here is your chance to talk back on one of the big stories of the day, and that big story, the debt talks. today's question, what is a solution to the political stalemate. carol costello has more on that. >> the never ending debt ceiling debate. you know the players, obama, boehner, the gang of six, and the tea party, and you don't like them much, not because most republicans want to save taxes, or democrats don't want to get rid of entitlements, and americans are sick of it. 80% of voters -- i said 80%, are now dissatisfied or angry about the federal government is worki working. lawmakers are aware of how you feel, really? what are they doing about it? calling each other names.
>> the united states has a special responsible to itself and the world to meet its obligations. it means we have a well-earned reputation for reliability and credibility, two things that set us apart from much of the world. >> and you will see the script come up. there you see it, where the democrats are going with that. some republicans are much more direct. congressman allen west sent an e-mail to wasser mun schultz. here is the e-mail. he called her the most vile unprofessional and despicable member of the u.s. house of representatives. why? because they disagree over the cap and balance bill. you thought things would get better after the mid-term elections, when voters voted out so many incumbents. so when it comes to the debt ceiling, what is the solution to the political stalemate?
facebook..com/carolcnn. a little girl dies of starvation. it's hard to watch, but she is one of tens of thousands of famine victims in africa. you will hear from a father that had to bury his 4-year-old daughter. ny people can get through selectquote for less than a dollar a day. selectquote found, rich, 37, a $500,000 policy for under $18 a month. even though dave, 43, takes meds to control his blood pressure, selectquote got him a $500,000 policy for under $28 a month. ellen, 47, got a $250,000 policy for under $20 a month. all it takes is a phone call. your personal selectquote agent will answer all your questions ... and impartially shop the
in need of food. many of them are walking for decades in scorching temperatures trying to reach refugee camps. the u.n. says more than 10 million people are being affected across the region. we have one refugee family's heart-breaking story. >> reporter: he carries the limp body of sarah, his dead child. she drew her last breath at dawn. sarah was just 4, and they pray for her soul and bury her. severely malnourished, be a raw ham tried to get sarah to the nearest hospital, and a ride
costs more than a dollar here, more than any of the new refugees could afford. sarah's uncle said they fled here hoping for better. we didn't come from money from somalia or anything, he says, we're refugees, but we're dying because we don't get enough help. abraham's family arrive tired and hungry, but were forced to beg for food for two weeks. when they finally got given it, it didn't help. we haven't been given enough help it says, and we have been given flower and maze, and a child that is sick can't get well on that. we need help. and now they are worried about losing another child. another child is thin. it's in god's hands, not in mind. if it stays this bad, more people will die. they call this place what means
caucus, where people bring their animals to die. tomorrow we will focus on what is being done to help the refugees. barbara starr will join us to discuss how a terrorists group tied to al qaeda is affecting international response to the crisis. in the meantime, can you go to cnn.com/impact on find out how can you help. honey bunny. [ babbles ] [ laughs ] we would do anything for her. my name is kim bryant and my husband and i made a will on legalzoom. it was really easy to do. [ spits ] [ both laugh ] [ shapiro ] we created legal zoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side.
here's a run down of some of the stories we're working on. the bright issue prime minister is doing all he can to distance himself with the news corp prices. and then the grid iron gridlock finally over? we have the latest on the nfl lockout. later, check your in box, a generation that doesn't remember a world before e-mail sends out
wedding invitations online. cnn in depth. british prime minister david cameron was firing back in the parliament this morning. the prime minister's former communications director was once editor of the tabloid at the center of the scandal. >> of course i regret and i am extremely sorry about the fury it has caused. with 20/20 hindsight and all that has followed i would not have offered him the job and i suspect he would not have taken it, but you don't make decisions in hindsight. >> it's not about hindsight, mr. speaker, and it's not about whether he lied to him, but it's all about the information and warnings the prime minister ignored. he was warned, and he preferred
>> no. >> who is responsible? >> the people that i trusted to run it, and then maybe the people they trusted. >> new york times media reporter joins us from new york. convincing rupert murdoch did not know much about the phone hacking or police bribery? >> this has been the party line for senior news corp executives all along. they said this malfeasance occurred at levels below them and they had no way of knowing it was going on. i think what was less convincing in that testimony was that rupert murdoch said he was at times disengaged from that the newspaper, and everybody that covers him knows he's a hands on editor, and he is in touch with his editors, multiple times a day. >> was that the strategy to show that he was disengaged and his
son, james murdoch, would be the one that would be in the driver seat of answering questions. is that a way in which to say, you know, rupert murdoch, my dad does not know a whole lot and i know all there is to know? >> well, i think it was a strategy on both of their parts to put distance between themselves and people at the lower levels of the company who should have known this was going on. i think it's another question altogether, whether or not they didn't ask the questions they should have asked, or they just didn't know, period. >> did you talk to any of your sources within the murdoch company, any executives that have opinions about the performance of james or rupert murdo murdoch, or rrebekah brooks, fo that matter? >> well, i think both rupert and
james performed adequately. i don't think anybody thought it was a runaway success. it could have gone a lot worse and the questions could have got more intense. you will hear there is almost a certain deference that members of parliament paid. it's not like what you see in congress in the united states where members are grilling the people testifying before them. so i think that the expectations were very low, and that helped, but by and large inside the company, there's a feeling that this didn't do anything to hurt news corporation. >> thank you, so much, jeremy peters, we appreciate it from new york. >> thank you, fredricka. relief for all of you armchair quarterbacks across america. the four-month nfl lockout could be drawing to a close. nfl players could vote on a collective bargaining agreement as early as today. and among the deals provisions,
players would get almost half the $9 billion in revenue the league takes in every year. even if the lockout comes to an end, it won't change of training camp host cities across the country. the jets said they would not go to new york, and that's a huge blow for the town's economy, just under $6 billion lost. here is poppy harlow. >> reporter: last summer, it looked like this, but this year it won't look like anything close. >> it's like royalty coming into town for us. >> reporter: population, 19,000, it has been home to the new york jets' training camp since 2009. >> coming up here, it exceeded our expectations. >> reporter: a year ago this field was full of jets players
attracting 41,000 spectators that filled the local bars and restaurants. but this year, there's none. in the midst of the lockout, jets's management cancelled training camp here. >> america loves football, and we missed out big time. >> it was heartbreaking. you have 250-pound pro athletes walking down the street and it's amazing and they're in your restaurant. >> reporter: a blow to the tiny economy. >> we're talking millions for the small businesses. >> reporter: jets training camp brought in $5.8 million last year in just three weeks, nearly 5% of the entire county's annual budget. >> the best month we ever had. a couple bills thrown at sanchez, of course he just signed the contract. >> it's really too bad.
>> reporter: jets training camp effectively created a tourism business when there wasn't one. tell me what it was like having them come here? >> my jaw dropped. i can't even explain the emotion. >> reporter: portland is not the only town hurt by the lockout. the raveens have cancelled their camp, and between the jets and the giants, the economic impact in new york is so big the state attorney general has launched an antitrust investigation into the nfl lockout, saying it will inflict economic injuries statewide.
>> poppy harlow with us now. the jets will miss the town and the town certainly missing the jets. >> certainly, you know. it's interesting, the real sense you get up there about how this goes past money. yes, this is almost $6 million for the town in three weeks. but that guy you heard talk, mark, the jets called him personally and said, look, because training camp is cancelled, would you please bring your restaurant to us, and we'll practice in new jersey, would you load up the traveling fan and bring us down to us at the restaurant. another interesting point in the attorney general's investigation in new york about whether or not the lockout was legal and the local businesses that don't get the training camp, he said it's to be continued to see if we see a deal reached. there is a big vote tonight. >> is it clear whether the restaurant said okay we will put
our recipe on wheels and come to you? >> they are going to do it. he was loading up the truck and getting ready. they were loading up the truck when we were there earlier this week, and they will drive the four hours down to new york to do that next week for jets' training camp, assuming there's a deal and the jets can practice. this guy, a 30-year jets fan drives four hours to every single jets came with his 4-year-old son. talk about a diehard jets fan. >> no kidding. and marcell dareus, he can't wait to get on the field. why? because he has been mowing a lot of lawns, because he can't practice with his team the buffalo bills, and his godfather put him to work this summer. >> you have to wait until the sun is up. he might wait until noon and the sun beaming straight on you, and he feels like you lose weight
that way. i love being in the yard. cutting the grass, pulling weeds. it's just -- it just eases your mind. take the lockout out of it and the contract out of it, and everything away from me, and what else do i have going on in life. >> you have to say yes on the godfather. he says he is looking forward to the end of the lockout so he can fulfill his dream and play in the nfl. people go zip lining for fun, usually, sliding down a metal wire high above rivers and mountains, but these folks are doing it to escape their country. 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars.
smugglers are finding new creative ways to get people across boarders. one surprising way? zip lines, normally used by hikers and outdoor adventurers. joining me, editor, rafael romo. when one system doesn't work, or somebody puts a stop to it, then you have to get inventive, and this is what this is. we have noticed a number of arrests in central mexico has increased dramatically. we wanted to know what was behind the increase, and this is what we found. >> reporter: for just a few bucks, you can pay yourself a way across the river. a migrant admits he is crossing this way because he doesn't have
a passport. the zip line connects the community of carmen to the mexican town. once in mexico, migrants travel on freight trains or by bus to the u.s. border. many never get there. last week, mexican authorities stopped a bus in the central mexican state with 104 undocumented migrants onboard. in august last year, 72 would-be migrants were killed by a mexican drug cartel. those that do get to the border have another river to cross, or a 21-foot wall. although many go now underground. u.s. border patrol agents in arizona gave us access to this tunnel. it's meant to prevent flooding, but it has been used to smuggle immigrants and drugs. >> we try to see a sign if somebody has been going through. >> we're inside what is called the grand tunnel. it's underground in nogales,
arizona. right next to me on the other side of this cage is new mexico. a way a lot of smugglers will operate is to use smaller tunnels like this one bringing people and drugs and risking their lives. >> there was a group and got caught in a flash flood, and hours later they were looking for a body. >> reporter: some die trying to get across the border, and thousands more will make it into the land of their dreams after a trip of hundreds and even thousands of miles, and for some of them a journey that included this zip line. >> rafael, nobody is keeping a close watch on this quau wad mallen and mexican border? >> they are giving priority to watch crime, but not necessarily these people you see here.
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just so you know, you're a member of the millennials, or generation y. many were born in a laptop in hand. smart businesses are catering to their every need. we have more on that. how are the businesses tapping into the market? >> for businesses it's trying to figure out what makes the millennials particular, and what grabs their attention. they are focusing online to do that. this company is honing in on the things that matter in the lives of millennials. take a listen. >> our business is all about the young people coming of age, and
millennials are an important market for us, and they are our market. they are a different consumer, and they want things tailored just for them, and that extends from their wedding to the baby names they choose. >> the millennials are a huge potential market. only 20% of millennials are married and one-third have a children, but buying a home and marriage are very important. for each of these milestones, fredricka, a lot of these people want information and lots of it, and that's what the business is delivering. >> how are millennials changing the wedding business? >> oh, sure. you know, almost every bride goes online to plan their weddings. weddings are bigger and more expensive than ever, and the average costing $27,000 last year. and there's a reason for the bigger price tag.
>> the millennials are getting married older, and they have had careers and salaries and are taking control of their own budgets. that's one of the key differences. >> parents are chipping in, probably 40% of the wedding, and couples and groom's parents are chipping in, so it's a three-way deal. >> and they say once they hooked a bride, there is a 40% chance they will sign up with the bump, and so they keep them coming to their web sites. >> how about stocks? we got a big jump, because the president said it looked like a deal was close, but it looks like it fizzled out. >> the dow is down 18, and the nasdaq is down 13. investors are waiting to see when the debt deal will happen. and we have a look at the
housing, and that has us down a bit. and stellar earnings from apple. apple shares are surging 3%, going for $388 a share. maybe there will be a bounce in the market after what we now have learned will be a meeting between president obama and house and senate leaders at 2:50 at the white house there, just during the white house briefing just moments ago. this was announced by the spokesperson, and so again, obama to meet with republicans and democrats later today at 2:50 eastern time today. you have been sounding off on the "talk back" question. carol costello is here with some of your responses. carol? >> you know what the president said earlier about the talks with lawmakers? >> what? >> it was time to talk turkey, they are talking turkey today, and they are going to talk about
the debt ceiling and hopefully come to the conclusion. this is from nancy. cut the politician's pay or don't pay them at all if they cannot come up with a good solution and pass it. congress needs to sign only one pledge, and that's to defend the constitution of the usa. this from marsh, we're failing in economic and intellectual competition, and over extended in conflict, and about to become insolvent. sad, really. i miss america. and this from jo. both sides are so screwed up, it's not funny. please continue the conversation, face bo
facebook.com/carolcnn. you told us what you wanted to see, because we asked. your choose the news story is just moments away. the chevy cruze eco offers an epa estimated 42 miles per gallon on the highway. how does it do that? well, to get there, a lot of complicated engineering goes into every one. like variable valve timing and turbocharging, active front grille shutters that close at high speeds, and friction reducing -- oh, man, that is complicated. how about this -- cruze eco offers 42 miles per gallon. cool? ♪ ♪ let me make you smile
♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos. so i wasn't playing much of a role in my own life, but with advair, i'm breathing better so now i can take the lead on a science adventure. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator, working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have
a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, take the lead. ask your doctor if including advair could help improve your lung function. get your first full prescription free and save on refills at advaircopd.com. the moment you have all been waiting for. the choose the news segment. something you have been paying for things with, and it's known as bitcoins.
felicia taylor looks at how his works. >> reporter: cold hard cash is being exchanged. but so is a virtual kint of currency called bitcoin. the payment takes place entirely over the internet by anonymous encrypted code. this one being made with a mobile device. there are more than 6.5 bitcoins in circulation right now. users can purchase everything from clothing to professional services to tech gadgets. meze grill is one of the few accepting bitcoins, and he began in april and has a handful of customers paying with them each day. >> we have had a handful of customers who have came through
because we accept bitcoins. >> i use it as much as i can. people are getting into it to invest, but i have lunch with it here. we try to support all the merchants that accept it. >> reporter: there is no bank or government involvement. that absence of regulation is one of the reasons why bitcoin is so attractive to some. >> some are worried about the fact that the fed has so much control over monetary policy. at any moment the fed can print a ton of money and you have inflation. other people, it's less of an economic argument but more of an ideology. >> reporter: for others it's an investment opportunity, or something cool they want to try out. here is how it works.
users download bitcoin software, and then they fill the virtual wallet with virtual bitcoins, acquiring them through a series of complex mathematical calculations, or get them from a bitcoin currency exchange. the way they get their value is similar to the way stocks get their value. bitcoin buyers drive it up, and sellers drive them down. transactions are anonymous, and bitcoin makes it easy to sell illegal drugs or monitor money over the internet, and some say bitcoin is legit and can pave the way for digital concern sees, one click at a time. >> if your choice did not win or you want to check out the runners up, i will have the link to them on